“I’m afraid to ask for money.”
“What if they can’t/won’t pay?”
“I barely have time to get them registered, now I have to ask for money too?”
Thirteen years ago HDHPs were just gaining steam in the marketplace. In October 2008 I gave a conference presentation encouraging providers to start changing their patient collection practices. Frankly, the presentation is as relevant today as it was then. In spite of all of the wonderful software tools now available to help providers collect patient payments more easily, providers continue to struggle with point of service collections.
Why is it important?
I’ll repeat what I said in 2008: key to collecting more is setting patient expectations. We can do that by:
- Providing an estimate.
- Reminding when payment is due.
- Establishing a payment plan.
- Reviewing the process of collections.
- Introducing the financial counseling process.
- Distributing the charity care application.
- Always collecting at the time of service.
- Authorizing a payment method for after claim processing.
- Collection procedures consistently communicated.
What’s the calculation?
There’s a couple of ways to look at it, as a percent of total self pay cash or as a percent of net patient revenue.
Patient POS payments
———————————————–
Total self-pay cash collected
or
Patient POS payments
———————————————–
Net patient revenue
What is the benchmark?
If using net patient revenue, industry average is ~1%, best practice would be 2%+. If using self pay cash collected, well let’s say the more the better for all the benefits one will reap from doing so.
How often should I report?
Once per month to include with the leadership report will give you the feedback you need to make adjustments as needed.
Where do I get my data?
Payment posting report that is able to distinguish payments received at POS from those received post service.
What does it look like?
What else?
- Patient Estimate Rate
- Prior Authorization Rate
The above list will become active links when the articles are available.